Silver fever grips Singapore as physical supply dries up and prices soar

SINGAPORE: Have you tried buying silver in Singapore lately? Noticed anything unusual? Well, it’s getting harder to find. An international outpouring in silver prices has prompted a buying fever, leaving local merchants clambering to keep their stocks longer inside shelves. In some shops, the waiting lists have been strained for months now, as traders scuffle to sustain buyers’ interest and urgency.

The boom follows an astronomical year for valuable metals. Despite uncertainties in the economy and the continued presence of international strains and conflicts, industrialists and investors view silver and gold as secure havens. That is because silver has outperformed major stock catalogues and currencies; simultaneously, gold hits a significant high, making the matter an engaging subject for discussion, whether one is at a dinner table or participating in an investment meeting.

A rally that took everyone by surprise

In 2025, silver scaled a confounding 161%, crossing the US$80-per-ounce (or S$102-per-ounce) spot for the first time. Gold rose too—66% over the same period—but it was silver that truly stole the show. Analysts say the surge is a mix of strong industrial demand, especially in electronics and renewable energy, and a global supply crunch.

The excitement is spilling into local shops. “For us dealers, we are not doing a lot of marketing,” said Kwek Seow Bin, owner of Singapore-based Metal & Picks. “People are searching for us to buy physical metals.” In fact, sales at his store jumped nearly sixfold from November to December alone.

Younger buyers and longer waits

The silver-buying crowd in Singapore is changing, too. Once dominated by middle-aged locals, shops are now seeing younger investors in their 20s—and even foreigners—lining up for bullion. About 90% of Mr Kwek’s customers now choose silver over gold, despite its reputation for price swings.

However, with demand soaring, supply has struggled to keep pace. An order of 300 one-kilogram silver bars placed last month won’t arrive until March, a far cry from the usual one- to two-week delivery. Dealers are responding by placing larger orders and leaning on online platforms, as buyers look for faster ways to secure silver before prices climb even higher.

Silver: Not just for investors

It’s not only investors driving up demand. Silver is a key ingredient in many high-tech industries, from electric vehicles and solar panels to semiconductors. It accounts for around 60% of global consumption.

“There is an over-demand situation,” said Dr Tan Kee Wee, economist at the Singapore Precious Metals Exchange. “For the past five years, the mines have not been able to come out with (enough silver) to meet the demand for the industrial side.”

Experts say the immediate effect on consumer prices in Singapore is likely limited. Silver is only a small part of the cost of a solar panel or an EV battery, so while prices have soared, everyday items won’t see a major spike—at least for now.

Still, analysts are keeping a close eye on Asian markets, where physical silver often trades at a premium. If that continues, it signals that industrial demand is outpacing supply, and manufacturers are even looking at alternatives like platinum and palladium to keep production running smoothly.